Would you file a claim?
Context: In 2024, a condo owner successfully appealed a non-renewal of his condo insurance that occurred after he submitted a $13,000 claim for storm damage in late 2023. Currently, he is facing limited water damage to the walls and hardwood floor due to fire suppression efforts after a neighboring building fire spread to his own. Additionally, his apartment will be uninhabitable for an estimated 2-3 months due to damage in the common areas. Unfortunately, his condo insurance policy does not cover temporary living expenses. The owner is apprehensive about filing a new claim with his insurer, fearing that it could lead to an outright non-renewal of his policy. What advice would you give him?
In this situation, the condo owner has a legitimate concern about the potential repercussions of filing another claim, especially given the recent history with the insurance company. Here are a few points to consider before making a decision:
Review the Policy: The condo owner should carefully read their insurance policy to understand the coverage for the current situation, including any provisions for living expenses and the implications of filing additional claims.
Claims History Impact: While it is true that filing multiple claims can impact a homeowner’s insurability, it’s essential to weigh the potential cost of not filing against the risks involved. If the damage is significant and the filing is justified, it may be worth the risk.
Consult with a Professional: Consider reaching out to an insurance agent or an attorney who specializes in insurance claims. They can provide guidance and help evaluate whether filing a claim is in the owner’s best interest based on their specific circumstances.
Document Everything: If the owner decides to file, they should thoroughly document the damage and any related expenses. This documentation can be useful not only for the claim but also for any potential discussions with the insurer about future coverage.
Alternative Solutions: If the stress of a potential non-renewal is too much, the owner might explore temporary alternative living arrangements that don’t involve filing a claim, such as staying with family or friends, or looking for short-term rental options that might not require reimbursement from the insurance.
Consider the Long-Term: The owner should also think about the long-term implications of their decision. If they don’t file and end up incurring substantial out-of-pocket costs, it could lead to greater financial strain.
Ultimately, it’s a personal decision that must balance the immediate need for assistance with the potential long-term effects on insurance coverage. If a claim is warranted, the owner should proceed with filing while being proactive in managing their relationship with the insurance company.